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INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
Note 6 — INCOME TAXES
During the three and six months ended June 30, 2026, the Company’s effective tax rate of 26.3% and 24.7%, respectively, which is above the U.S federal rate of 21.0% primarily due to the tax rate differential on foreign earnings, unfavorable U.S. permanent items, and withholding taxes on foreign earnings. These unfavorable items were partially offset by U.S. research and development (R&D) credits, along with favorable foreign permanent items, most notably tax incentives associated with R&D.
During the three and six months ended June 30, 2025, the Company's effective tax rate was 24.5% and 24.2%, respectively, which is above the U.S. federal statutory rate of 21.0% primarily due to the international tax rate differential and withholding tax on foreign earnings. These unfavorable items were partially offset by the favorable impact of foreign permanent items, most notably tax incentives associated with R&D.
In December 2024, Avient received a Notice of Deficiency (Notice) from the U.S. Internal Revenue Service (IRS) proposing an adjustment to the 2019 tax year resulting from a disallowed capital loss. The proposed incremental tax associated with the Notice is $23.8 million plus estimated interest of $8.2 million. We contested the Notice by filing a petition in U.S. Tax Court on March 4, 2025. The IRS' answer to Avient's petition included an additional accuracy-related penalty of $4.8 million and is subject to interest. The Company believes that the proposed penalty is also without merit, and we intend to contest the penalty vigorously in U.S. Tax Court. However, there can be no assurance this dispute with the IRS will be resolved favorably. As of June 30, 2026, the Company has not recorded any income tax provision related to this matter; therefore, an unfavorable ruling in U.S. Tax Court or settlement would adversely impact our effective tax rate and result in a cash tax payment.